Daily Dollar to Naira black market exchange rate today, Wednesday, October 18, 2023 in Nigeria can be accessed below.
In Nigeria’s ever-evolving financial environment, the prevailing exchange rate for the Dollar to Naira in the black market, often referred to as the parallel market rate, experiences frequent fluctuations. In this unofficial market, the US dollar takes precedence over the Nigerian naira, and foreign currencies are traded without official government sanction. For many Nigerians, this unregulated market has evolved into a crucial benchmark, providing a more accurate representation of the economic conditions compared to the official exchange rates.
Dollar to Naira black market exchange rate today October 18, 2023:
According to reports from bureau de change (BDC) operators, the Black Market Dollar to Naira exchange rate today stands at:
- Buying: 1040 NGN for $1
- Selling: 1050 NGN for $1
To put today’s Dollar to Naira black market exchange rate into perspective, traders in this unofficial market are purchasing one US dollar from customers for 1,040 naira and selling it for 1,050 naira. This demonstrates a significant difference when compared to the official exchange rates.
Dollar To Naira Yesterday Black Market Exchange Rate.
Yesterday, the exchange rate at the black market closed at ₦1040 for one $1.
Official CBN Exchange Rates
The Central Bank of Nigeria (CBN) sets the official exchange rates, with the following rates in effect:
- Buying: 764.64 NGN for $1
- Selling: 768.02 NGN for $1
Under these official rates, the CBN acquires one US dollar for 764.64 naira and sells it for 768.02 naira through authorized dealers.
Furthermore, data indicates that the average Dollar to Naira Exchange Rate Today at bank is as follows:
- Buying: 775.04 NGN for $1
- Selling: 780.04 NGN for $1
This means that banks were selling one US dollar for 780.04 naira and buying it from customers for 775.04 naira.
Dollar to Naira Exchange Rates: CBN and Bank Rates as of October 18, 2023
Influential Factors in the Naira’s Depreciation Against the US Dollar
Several factors contribute to the devaluation of the naira against the US dollar in Nigeria. These factors include:
- Fluctuating Oil Prices: Nigeria’s economy is highly dependent on oil exports. When global oil prices decline, it reduces the country’s revenue, foreign exchange reserves, and puts pressure on the naira’s value.
- Foreign Exchange Reserves: The depletion of Nigeria’s foreign exchange reserves, often due to servicing external debt, can weaken the naira’s exchange rate.
- Exchange Rate Policies: The Central Bank of Nigeria (CBN) plays a vital role in setting exchange rate policies. Interventions to maintain an official exchange rate, especially when foreign reserves are low, can lead to devaluation.
- Inflation: High inflation erodes the purchasing power of the naira, making it less attractive to foreign investors and causing devaluation.
- Economic Uncertainty: Political instability, economic uncertainties, and security concerns can deter foreign investments, reducing foreign exchange inflow and leading to naira devaluation.
- Global Economic Factors: Events like the COVID-19 pandemic can have a significant impact. The pandemic disrupted global trade, led to a drop in oil prices, and subsequently affected Nigeria’s foreign exchange earnings.
- Market Speculation: Speculative activities in the foreign exchange market can influence the naira’s value. Speculators betting on future devaluation can contribute to the naira’s decline.
- Balance of Trade: An unfavorable balance of trade, where imports significantly exceed exports, can strain the country’s foreign exchange reserves and put pressure on the naira’s value.
- Government Policies: Policies related to trade, foreign exchange, and economic management can affect the naira’s value. Decisions like fuel subsidy removal can impact inflation and, by extension, the exchange rate.
- Overall Economic Performance: Nigeria’s economic health, including GDP growth, employment rates, and overall economic stability, plays a role in determining the naira’s value in the international market.
These factors collectively contribute to the devaluation of the naira against the US dollar, shaping Nigeria’s exchange rate dynamics.
The exchange rate of the dollar to naira holds great significance as an economic indicator of Nigeria’s performance and stability. This rate fluctuates across different markets, including the CBN, banks, and the black market. While CBN and bank rates are officially regulated, the black market rate is determined by market forces.
That is the latest daily Dollar to Naira black market exchange rate today. You can always visit this website for daily dollar to naira rates and the latest news in Nigeria.”
